the irs is cracking down on the middle class

If you make from $25,000 to $100,000 dollars, the IRS is much more likely to audit you this year…

That’s the story in all the press today. So, if you intend to cheat, and if you’re in my tax bracket, you better think twice… I personally don’t mind that they’re going to be doing more investigations. I just wish they were more evenly distributed. I suspect, however, that it doesn’t make good economic sense for the IRS to go after the wealthy. They, after all, can afford good legal council. So, why not go after the middle class instead? You may only be able to get $4 grand or so out of each investigation, but it adds up, right? Sorry, but I’m sitting here finishing my taxes tonight, and not even the promise of free ice cream can cheer me up. Nothing short of revolution, I’m afraid, will.

This entry was posted in Other. Bookmark the permalink. Trackbacks are closed, but you can post a comment.

5 Comments

  1. egpenet
    Posted April 16, 2007 at 11:36 pm | Permalink

    What has been impressing me recently while walking around downtown: 1) the number of shops offering tax services, 2) the number of folks dutifully flowing through those doors, 3) what I take it to be the majority of those folks who are (in John P. Marquand’s terms) “lower middle to middle lower working class” folks going in for a $59.00 return and paying up the wazoo (means hefty fee) for an “instant” (which it isn’t) refund. And what is a City income tax going to do to make it any better for these folks … us folks?

  2. mark
    Posted April 16, 2007 at 11:55 pm | Permalink

    I suspect that most of the tax places in town, that have been popping up like weeds these past few years, make most o f their money by offering to give their clients cash back at the time of filing, in exchange for a large fee. I haven’t verified that, but I’m guessing that’s what happens in a lot of these places that are only open a month or so a year. I think they just do people’s returns and then offer them cash up front for whatever they have coming to them, minus a percentage of the total. Scummy. Predatory.

  3. egpenet
    Posted April 17, 2007 at 7:48 am | Permalink

    I went further … I went into each of them, with the exception of the little place on North Huron. I need some tax work and I interviewed and priced at each. Hewitt, Block, Liberty … the threee majors … and my impressions from above stand. Yes, they make all of those “instant” refund offers at high “cash out rates,” but I was more focused on what I said above. Great numbers of people doing their duty and walking out with their “short form” copies and hoping to get something back, and ASAP with their signed cash advance form.

    BTW … I went back to Liberty (both the Michigan Ave. and Washtenaw Ave. offices are owned by the same people.) Oftentimes a tax preparer is the way to go, especially with self-employment issues or to help with past issues, since the best ones are so-called “IRS-certified,” and many worked for the IRS at one time.

  4. Lisa
    Posted April 17, 2007 at 2:26 pm | Permalink

    Yes, but it is still less likely that you’ll be audited than if you make $100,000 or more. (Whew! I’m glad I didn’t earn that extra $65 to put me in this tax bracket.) Er, moving on to something more factual, here’s a quote:

    “Even though the middle class will be facing more audits this year, they’re still technically the least likely group to be targeted with an audit. For those making under $25,000 the odds are 1 in 94. Above $100,000: 1 in 16. Last year the middle class odds were 1 in 140.”

  5. dr. teddy glass
    Posted April 17, 2007 at 4:11 pm | Permalink

    July 23, 2006: “Layoffs at IRS will halve audits of wealthy estates”

    http://www.iht.com/articles/2006/07/23/business/tax.php

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Connect

BUY LOCAL... or shop at Amazon through this link Banner Initiative Nanook